section129(1)(b) of Rajasthan GST ACT

[KANHAIYA AGRAWAL]

Please guide me regarding penalty deposited due to Goods Seized Under Section 129(1)(b) of the Rajasthan- RGST Act, 2017.

The seizure of our goods while in transit from Udaipur- Rajasthan, to Delhi. The goods were intercepted by Rajasthan RGST officers at Alwar- Rajasthan. The officers imposed a penalty under Section 129(1)(b) of the RGST Act, 2017 totalling ₹5,67,562/- (equal to 100% of the value of goods) for the release of the goods.

1. My Calculation:
   • Taxable Value of Goods: ₹5,67,562/- Tax (18%): ₹1,02,161/-
   • Penalty (50% of Value): ₹2,83,781/-
   • CGST: ₹1,41,891/- SGST: ₹1,41,891/-
2. Officers' Calculation:
   • Taxable Value of Goods: ₹5,67,562/- Tax (18%): ₹1,02,161/-
   • Penalty (100% of Value): ₹5,67,562/- (50% CGST + 50% SGST).
   • CGST: ₹2,83,781/-SGST: ₹2,83,781/-

The amount has been deposited under the head penalty CGST: ₹2,83,781/-SGST: ₹2,83,781/- to release the goods.

Please share correct calculation as per GST PROVISION?

Thanks in advance

Regards

[Amit Agrawal]

Dept's calculations for imposing penalty u/s 129(1)(b) is correct IMHO. "50% of value of goods" is the penalty u/s 129(1)(b) of the CGST Act, 2017and "50% of value of goods" is the penalty u/s 129(1)(b) of the RGST Act, 2017 in given circumstances of yours. 

On TMI portal, under RGST Act, 2017, old provisions of Section 129 are visible. Above views is by PRESUMING that Section 129 of RGST Act, 2017 is also amended on the lines of Section 129 of the CGST Act, 2017 and TMI has not updated RGST Act, 2017. But, my presumption is wrong / misplaced, my views will change. 

These are ex facie views of mine and the same should not be construed as professional advice / suggestion or recommendation.

[KASTURI SETHI]

The department's calculation is correct. There is no doubt at all.

[KANHAIYA AGRAWAL]

Respected Shri amit ji sir,

It means 50% CGST ; 50% SGST. and under IGST 100% of value of goods?

Please suggest.

[Amit Agrawal]

Dear Shri KANHAIYA AGRAWAL Ji,

Forth proviso to Section 20 of the IGST Act, 2017 (i.e. Application of provisions of Central Goods and Services Tax Act.) reads as under:

"Provided also that in cases where the penalty is leviable under the Central Goods and Services Tax Act and the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the penalty leviable under this Act shall be the sum total of the said penalties." 

These are ex facie views of mine and the same should not be construed as professional advice / suggestion or recommendation.

[KANHAIYA AGRAWAL]

Oky sir, noted with thanks.

Also want to submit that whatever amount of interest, late fees and penalty is mentioned under RGST ACT; the actual out flow will be just double in percentage and amount it is because RGST ACT only mentioned the amount of RGST AND CGST act is implied?

[Amit Agrawal]

GST Dept's proceedings are EITHER under two act (i.e. CGST Act & applicable SGST Act, but both always - generally specking) or under one act (i.e. IGST Act). Generally specking, you will not find that GST Dept's proceedings under single act other than IGST Act (i.e. EITHER CGST Act OR applicable SGST Act). 

These are ex facie views of mine and the same should not be construed as professional advice / suggestion or recommendation.

[KANHAIYA AGRAWAL]

Oky sir.

many many thanks for your kind suggestions.

Regards

AI Summary

Penalty under Section 129(1)(b) may be levied as combined CGST and SGST or aggregated under IGST. Penalty for goods seized in transit is imposed as a proportion of the goods' value; departmental practice treats such penalties as apportioned between CGST and SGST when proceedings are under central and state Acts, while under the IGST framework the penalty may be the aggregate of penalties leviable under CGST and SGST, leading to either split central/state components or a single aggregated IGST demand.